William B. Cassidy | Jun 30, 2010 1:31PM EDT
YRC Worldwide still believes it will "generate positive adjusted EBITDA" in the second quarter, the company said June 29, as it concluded its annual stockholder meeting.
The nation's largest trucking company said it expects a pre-tax profit for the second quarter in documents filed with the Securities and Exchange Commission.
The company uses "Adjusted EBITDA" -- earnings before interest, taxation, depreciation and amortization -- as a measure of its core operating performance.
It expects that figure to be positive despite an additional $9 million to $11 million in costs associated with the $37 million sale of most of its YRC Logistics subsidiary.
Company officials have repeatedly said business is improving, with more freight flowing back to YRC Worldwide terminals and tractor-trailers from shippers.
The transportation company expects its regional subsidiaries -- New Penn, Holland and Reddaway -- to have an operating profit for the second quarter.
Higher costs have increased "net cash usage" in recent months, putting pressure on YRC Worldwide's liquidity, leading it to secure additional credit and sell YRC Logistics.
The $5.3 billion company is recovering from more than $2.7 billion in losses over the past three years, and a $274.1 million loss in the first quarter of 2010.
The less-than-truckload operator broke even in April after losing $5 million in March and $21 million in February on an EBITDA basis, according to a Reuters report.
YRC Worldwide is expected to report its second quarter results in July. The company narrowly avoided bankruptcy last year and lost $274.1 million in the first quarter of 2010.
At its annual stockholder meeting June 29, the company replaced outgoing director Carl W. Vogt with Teresa Ghilarducci, the Teamster pick for YRC's board of directors.
Ghilarducci is a professor and director of the Schwartz Center for Economic Policy Analysis at the New School for Social Research in New York.
-- Contact William B. Cassidy at wcassidy@joc.com.